EV Photo:VCG

An industry body said on Thursday that the EU probe of Chinese electric vehicle (EV) has not sub-stantially changed the confidence and determination of Chinese enterprises to deeply explore Eu-ropean and global markets.

The remarks, which were made by the China Chamber of Commerce to the EU (CCCEU), came after an anti-subsidy investigation was launched by the EU into Chinese EVs, aiming at protecting its own industry in the name of "fair competition."

On Thursday, The CCCEU held a meeting with senior executives and representatives from 12 new energy Chinese companies to communicate the development of EV companies in Europe and their response to the EU's anti-subsidy investigation.

The CCCEU said that the European Commission quickly launched an investigation without receiving any complaints from the industry, which had an impact on the layout of Chinese EV companies in Europe, but it has not yet substantially changed the confidence and determination of Chinese com-panies to deeply explore European and global markets.

The investigation is "not helpful" in achieving its own green goals, especially as EU launched the legislative goal of banning the sale of new fuel vehicles in 2035, and its intention to increase the operating costs of Chinese enterprises in the European market will ultimately harm the interests of European consumers, the CCCEU said. 

The investigation also shows the constraint effects of the divided interests of the EU EV market and the different demands of each member state which is not conducive to the development of the EU's overall industry.

Regarding the EU's probe, China's Ministry of Commerce on September 14 expressed serious con-cern and strong opposition to the issue, calling the EU's behavior "blatant protectionism" and it will seriously disrupt and distort the global automotive supply chain, and have a negative impact on China-EU economic and trade ties.

The CCCEU said in a statement sent to the Global Times on September 13 that it strongly encour-ages the EU to approach progress made by China's EV industry with objectivity rather than resort-ing to unilateral economic and trade measures that could obstruct or elevate the development and operational expenses of Chinese EV products within the European market.

Chinese observers also noted that the move reflected EU's "biased mindset" toward Chinese manu-facturers, and the act could endanger China-EU cooperation linked to  green technology.

The CCCEU further warned on Thursday that it remains concerned regarding the  strategic signal that the European Commission is sending, that is accelerating the localization of the European EV and the "relocation" of the industry.

In addition to the anti-subsidy investigation, Chinese EV companies should take a close watch on the EU and some member states building market barriers in the name of "green" standards, which may weaken the competitiveness of Chinese companies in the European market, the CCCEU said. 

In response to the anti-subsidy investigation, Chinese enterprises should continue to improve their competitive advantages, product advantages and brand power based on China's overall supply chain, thereby reducing the impact of market protectionism, it said. 

Global Times